(The Center Square) – Incentives of $6.2 million from North Carolina, its third-smallest county and a 600-resident town are helping bring an $80.5 million investment from a China-headquartered paper products manufacturer.
Kingsun Eco-pack Co. and state economic leaders anticipate more than 500 jobs coming to Robbinsville in 8,000-population Graham County.
More than $2.8 million in a Jobs Development Investment Grant is coming from the North Carolina Economic Investment Committee of the state Commerce Department. Another $1 million is through workforce development training, and there’s $500,000 in a building reuse program.
On the local level, Graham County and Robbinsville are ponying up about $1.9 million.
Kingsun Eco-pack specializes in biodegradable paper tableware, according to its website. At the Robbinsville plant, the company will produce paper trays and platters commonly used in grocery stores and restaurants.
This will be the company’s first factory in the North America and is designed to better serve its U.S. customer base and reduce international shipping and the time it takes to get products to customers, according to North Carolina state officials. Graham County borders Tennessee in the far southwestern neck of the state. Robbinsville is about 90 miles from Asheville, and 65 miles from Interstate 40.
The job development grant is over 12 years for the project.
The state said the jobs will pay a minimum average wage of $46,707. The average annual salary in Graham County is $49,038, according to the U.S. Census.
Economists question the effectiveness of financial incentives to businesses to expand or come to a new state. Context is encouraged when wages are introduced because a few corporate leaders at a site can skew the average higher while the median wage would not have the same ratio.
Graham County is considered one of the poorest of the state’s 100 counties. The state designates as one of 40 Tier 1 counties, which are “most distressed” economically.
Tennessee also competed for the factory but North Carolina won because of factors such as utilities, a strong transportation network and a competitive incentives package, North Carolina officials said.
According to North Carolina officials, every dollar in grants awarded to Kingsun Eco-pack Co., Ltd. will produce $2.06 in increased state tax revenue. JDIG grants are only awarded after the company meets job and investment goals.
“JDIG grants hold companies to strict performance targets, but the grants can significantly help offset the cost of locating or expanding a facility in the state,” the North Carolina Department of Commerce says on its website.
